According to FT, Intel and the US will complete $8.5 billion in semiconductor investment by year's end

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Intel and the U.S. government are expected to finalize an $8.5 billion direct funding deal for the chipmaker by the end of the year, according to a Friday report from the Financial Times, citing sources familiar with the matter.

While discussions are in advanced stages, the report noted there is no certainty that the deal will be completed before the year ends. It also mentioned that any potential acquisition of Intel’s business, in whole or in part, could jeopardize these negotiations.

Both Intel and the U.S. Department of Commerce did not immediately respond to requests for comment from Reuters.

In March, U.S. President Joe Biden approved nearly $20 billion in grants and loans for Intel to enhance its domestic semiconductor production.

The provisional agreement includes $8.5 billion in grants and up to $11 billion in loans, which will be used to construct two new factories and upgrade an existing one in Arizona.

Additionally, Qualcomm (NASDAQ) has reportedly shown interest in acquiring Intel, according to a Reuters report earlier this month.

Once a leader in chipmaking, Intel has lost its manufacturing edge to Taiwan Semiconductor Manufacturing Co. (TSMC) and has struggled to produce a highly demanded chip for the generative AI surge, a space where Nvidia (NASDAQ) and AMD (NASDAQ) have capitalized.

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.